Page:United States Statutes at Large Volume 68A.djvu/246

 206

INTERNAL REVENUE CODE OF 1954

(b) LIMITATIONS OF SECTION.—Subsection (a) shall apply only if the life insurance department would, if it were treated as a separate corporation, qualify as a life insurance company under section 801. PART III—BANK AFFILIATES Sec, 601. Special deduction for bank affiliates. SEC. 601. SPECIAL DEDUCTION FOR BANK AFFILIATES.

I n the case of a holding company affiliate (as defined in section 2 of the Banking Act of 1933; 12 U.S.C. 221a (c)), there shall be allowed as a deduction, for purposes of section 535(b)(8) (relating to the computation of accumulated taxable income) and section 545(b)(6) (relating to the computation of undistributed personal holding company income), the amount of the earnings and profits which the Board of Governors of the Federal Reserve System certifies to the Secretary or to his delegate has been devoted by such afiiliate during the taxable year to the acquisition of readily marketable assets other than bank stock in compliance with section 5144 of the Revised Statutes (12 U.S.C. 61). The amount of the deduction under this section for any taxable year shall not exceed the taxable income for such year computed without regard to the special deductions for corporations provided in part VIII (except section 248) of subchapter B (section 241 and following, relating to the deduction for dividends received by corporations, etc.). The aggregate of the deductions allowable under this section and the credits allowable under the corresponding provision of any prior income tax law for all taxable years shall not exceed the amount required to be devoted under such section 5144 to such purposes.

•>lfR

§ 594(b)

�